Coinbase, a publicly-traded cryptocurrency exchange, can no longer offer its services to users in Kazakhstan due to a violation of Kazakhstani law on digital assets. According to local reports, the Ministry of Culture and Information of the Republic of Kazakhstan confirmed that the Coinbase website has been inaccessible to local IP addresses.
The February 2023 law mandates that digital asset trading and crypto trading companies, such as Coinbase, obtain a license from the Astana International Financial Center (AIFC), responsible for granting national licenses to operate. Crypto exchanges including Binance, Bybit, Upbit, Biteeu, and ATAIX have obtained licenses from the AIFC, making them eligible to operate freely within the country.
A Telegram media group, confirmed that Coinbase was blocked in September, and Kraken was also affected by the Kazakhstani government’s decision. However, virtual private networks (VPNs) are often used to bypass such bans.
Other platforms that have faced similar blockages include financial companies Interactive Brokers and the New York Mercantile Exchange (NYMEX). However, the bans were lifted following requests from the Financial Monitoring Agency.
Kazakhstan upholds strict laws on crypto exchanges operating in the country but has demonstrated a friendly outlook on cryptocurrencies. In 2019, the government declared that taxes would not be imposed on crypto-mining activities. The following year, the Kazakhstani government announced it would invest $738 million in crypto mining over three years. The country’s Q1 2022 earnings report disclosed $1.5 million revenue from crypto mining.
In addition, the Ministry of Digital Development, Innovations, and Aerospace in Kazakhstan paved the way for licensed crypto exchanges to open bank accounts within selected banks across the country. The government has also explored the creation of a central bank digital currency (CBDC) in collaboration with the Binance-branded BNB Chain.
